Help - GST on Maid Service

Care Crew (0 Points)

27 November 2021  

Hello, we are domestic help training and placement services company. Need URGENT help on the subject of GST for our business. 

We charge our customers a monthly service fee over and above the salary being paid to the help, which is also paid by us. I need to understand that should we charge GST on the service fee alone or on the salary of the domestic help as well?

Which of the following scenarios would apply? The salary that we charge our customers is the exact salary that we pay to the domestic help and there is no mark up or money that we make on salary. Our revenues are only dependent on the service fee that we charge.

Items GST on SF GST on Salary + SF
Salary - Cook 12,000 12,000
Company Service Fee (SF) 500 500
GST (at 18%) 90 2,250
Total Bill 12,590 14,750

Any expert advice on this is welcome.